NewLink Genetics downgraded to Neutral from Buy at BofA/Merrill

Stifel analyst Stephen Willey noted that NewLink Genetics (NLNK) now expects to complete the majority of enrollment in the Indigo301 melanoma trial by year-end, versus its previous expectation to complete enrollment in 2018, which he said is likely due to additional time required for dose optimization of the novel indoximod salt formulation. The remainder of the 2018 calendar the company laid out is full of mostly expected catalysts and in-line with prior guidance, said Willey, who still expects NewLink to remain levered to Incyte's (INCY) date from the Phase 3 ECHO-301 trial. Willey keeps a Buy rating on NewLink shares.

03/02/18

STFL

03/02/18NO CHANGETarget $21STFLBuy

NewLink Genetics price target lowered to $21 from $25 at Stifel

Stifel analyst Stephen Willey said NewLink Genetics' approximately 2-month delay in starting patient enrollment into the randomized portion of the Phase 3 Indigo301 trial is an incremental negative, but noted that management remains confident in its ability to implement the "fundamentally-simple changes" needed and the delay may actually provide increased flexibility in terms of strategically pivoting off Phase 3 ECHO-301 data. He has "conservatively" pushed-out indoximod launch timelines and lowered his price target on NewLink shares to $21 from $25, but maintains a Buy rating on the stock.

04/06/18

CANT

04/06/18NO CHANGETarget $26CANTOverweight

Cantor says premature to assume NewLink trial will fail like Incyte's

NewLink Genetics' (NLNK) indoximod, which acts as a tryptophan mimetic rather than an IDO enzymatic inhibitor, has shown differentiated data versus Incyte's (INCY) epacadostat, Cantor Fitzgerald analyst Mara Goldstein tells investors in a research note. NewLink is trading down 37.5%, or $2.75, to $4.57 after Incyte announced that its ECHO-301 study of epacadostat plus Merck's (MRK) Keytruda versus Keytruda alone was unsuccessful in treating advanced melanoma. Goldstein thinks assuming failure of indoximod "may be premature," but she acknowledges that NewLink shares are likely to be pressured with the company's Phase III trial end likely over a year away. If indoximod is truly differentiated, however, NewLink shares will be higher than $26 given the "now likely limited competition," Goldstein contends. She reiterates an Overweight rating on the shares with a $26 price target.